PC Mall Quarter Revenue Up 20 Percent, SMB Sales Strong
IT solution provider PC Mall reported its third-quarter earnings for 2010 on Thursday, announcing a 20 percent increase in revenue over the third quarter of last year.
Profit increased from $39.2 million in Q3 2009 to $43.2 million in the third quarter this year. Diluted earnings per share were $0.17, up from $0.11 per share in the third quarter of last year, an increase of 55 percent.
Wall Street analysts estimated earnings-per-share of $0.18.
Sales for the Torrance, Calif.-based solution provider were $336.1 million, up 20 percent over Q3 2009 in which sales were $280.3 million.
Sales in the SMB market were up 29 percent year-over-year, from $85.2 million in 2009 to $110.0 million in 2010 due to "improved account executive productivity" and revenue generated by a new SMB sales office opened in Chicago, the company said. Profit in the SMB sector was up 24 percent, from $11.7 million in Q3 last year to $14.6 million in the most recent quarter.
Public sector segment sales, however, decreased 4 percent year-over-year, falling to $53.5 million from $55.6 million in the third quarter last year. The reduction is due to a 13 percent drop in federal government sales. PC Mall said the federal sales drop was the result of a 75 percent drop in Sun Microsystems sales, which it said was "substantially related" to the acquisition of Sun by Oracle in January. Excluding Sun sales, federal sales were up 23 percent over the third quarter last year.
Sales in the company’s Mac Mall segment were down 7 percent.
"I am very pleased that in the 3rd quarter we were able to grow the top line by 20% and our adjusted EBITDA by 43% as compared to the third quarter of 2009. Excluding sales of Sun Microsystems, consolidated sales grew 25%. We continued to see signs of increased IT spending in corporate markets, and are optimistic that those trends will continue," said Frank Khulusi, chairman, president and CEO of PC Mall, in a statement.
"The investments we have continued to make are beginning to contribute to both our sales and our productivity."